(LO 5) Craigmont uses the allowance method to account for uncollectible accounts. Its year-end unadjusted trial balance shows Accounts Receivable of $112,500, allowance for doubtful accounts of $745 (credit) and sales of $965,000. If uncollectible accounts are estimated to be 0.9% of sales, what is the amount of the bad debts expense adjusting entry?

Multiple Choice

$8,685

$7,940

$9,430

$8,810

$8,885